Question

In: Operations Management

John works for a disclosed principal in securing real estate for business expansion. While working on...

John works for a disclosed principal in securing real estate for business expansion. While working on a purchasing assignment for his employer, John attempts to back out of a deal he signed with a seller. Which of the following is true?

  • The seller may look to either John or his employer to satisfy the contract, depending on the outcome of the sales deal.
  • The seller may look to either John or his employer to satisfy the contract, depending on whether John’s actions were within the scope of his authority or not.
  • The seller must look to John’s employer to satisfy the contract he signed.
  • The seller must look to John to satisfy the contract he signed.

Solutions

Expert Solution

Ans (Option c) The seller must look to John’s employer to satisfy the contract he signed.

A disclosed agent acts in the name of the principal, the customer is aware that they are dealing with an agent of the principal. The supply or purchase of the goods or services takes place directly between the Principal and the customer.

A disclosed principal is liable to a third party for a contract made by an agent who is acting within the scope of his or her authority.

keosha answered 2 years ago
Next > < Previous

Related Solutions

John Trident was a real estate agent working for Quantum Real Estate Ltd. His sister-in-law Jennie...
John Trident was a real estate agent working for Quantum Real Estate Ltd. His sister-in-law Jennie was looking for some income property, and after some searching John Trident entered into a deal with Mr. and Mrs. Lipton, persuading them to list their property for sale with him and subsequently presented an offer to purchase from his sister-in-law, who used her maiden name (P. Hayes) so that the sellers would not know that he was related to the purchaser. Before the...
Jamie is a real estate agent working for ‘Houses R Us’ real estate. As part of...
Jamie is a real estate agent working for ‘Houses R Us’ real estate. As part of his employment contract, Jamie receives a base salary of $50,000 per annum plus 10% of the agency’s commission on sold properties where he has had a direct connection with the sale. He is also provided with a car, a Toyota Kluger costing $48,000. He is not required to contribute to the running costs of the car which total $13,500 per year and is allowed to...
Question 2 Jamie is a real estate agent working for ‘Houses R Us’ real estate. As...
Question 2 Jamie is a real estate agent working for ‘Houses R Us’ real estate. As part of his employment contract, Jamie receives a base salary of $50,000 per annum plus 10% of the agency’s commission on sold properties where he has had a direct connection with the sale. He is also provided with a car, a Toyota Kluger costing $48,000. He is not required to contribute to the running costs of the car which total $13,500 per year and...
18. John is an individual and is a real estate professional and materially participates in Partnership...
18. John is an individual and is a real estate professional and materially participates in Partnership A and B. John is a limited partner in two real estate partnerships. Partnership A produces a passive loss of $3,000 (allocated to John). Partnership B produces passive income of $5,000 (allocated to John). How does John treat the income/(loss) on his tax return? A. Include $2,000 net passive income in taxable income. B. Recognize income of $5,000 and don’t deduct losses of $3,000....
Nichols is the principal owner of Samuel Nichols, Inc., a real estate firm. Nichols signed an...
Nichols is the principal owner of Samuel Nichols, Inc., a real estate firm. Nichols signed an exclusive brokerage agreement with Molway to find a purchaser for Molway’s property within ninety days. This type of agreement entitles the broker to a commission if the property is sold to any purchaser to whom it is shown during the ninety-day period. Molway tried to cancel the brokerage agreement before the ninety-day term had expired. Nichols had already advertised the property, put up a...
What if: You have a real estate property of value $400000, and you have a principal...
What if: You have a real estate property of value $400000, and you have a principal amount left of $200000. You have a surplus of $50000 on your expenses every year, what would you do - pay off $30000 of the principal and invest the rest(bank CD, mutual fund etc) or keep it all in an investment (same CD, mutual fund etc.?). [Paying off the principal will lower your mortgage interest, leading to tax implications with respect to itemized deductions,...
You’re working as a real estate analyst. You are hoping to get an idea of the...
You’re working as a real estate analyst. You are hoping to get an idea of the real estate market for a commercial property your company is looking to acquire. You run a search and find that 12 similar properties in your area have recently sold for (been valued by the market at) the below. Prices in $,000s. (PLEASE SHOW ALL WORK ON WRITTEN, WORK SHOWN SHEET, INPUT FINAL ANSWERS BELOW) 970     850 870     930         940         860         850         750         712         701        ...
Describe the characteristics that define real estate activities as a trade or business.
Describe the characteristics that define real estate activities as a trade or business.
If the taxpayer is considering buying a business and the accompanying real estate and wants to...
If the taxpayer is considering buying a business and the accompanying real estate and wants to receive the limited liability of incorporating as a C Corp entity, are there better forms of business to establish and why
While investing in some Real Estate can be very profitable, the recent housing crisis had a...
While investing in some Real Estate can be very profitable, the recent housing crisis had a huge impact on the entire U.S. economy. How can investing in real estate be problematic? please be detailed.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT